Language Training Market in Hong Kong and Macau

Executive Summary

Hong Kong

The government of Hong Kong intends its citizens to be bi-literate (Chinese and English) and tri-lingual (Guangdonghua,¹ Putonghua and English) within the next generation. To this end, it has evaluated the language strengths of its people, developed a strategy for improvement, provided legislation to effect systemic change and allocated funds to ensure change takes place. It has set goals, created benchmarks, developed implementation strategies, a mechanism for continuous monitoring and passed a legislative framework to ensure success. Although the issue is one of education, the business and labour sectors are working alongside communities in Hong Kong to effect change.

Supported by the government’s Language Fund and driven by the recommendations of the Standing Committee on Language and Research (SCOLAR), a culture of language acquisition is developing in Hong Kong. Six major funding schemes totaling $2.44 billion² are in place which will involve the participation of a significant cross section of the community.

The Hong Kong government welcomes the services and expertise of non-local providers (the government’s term for foreign language training providers) to help Hong Kong achieve its goals. "Invest Hong Kong" is a government department created specifically to assist overseas enterprises in establishing a local presence.

Within the Asian language market as a whole, the trend is towards transnational education. In this paradigm, foreign service providers set up local offices to supply language training programs, often using non-traditional approaches. Australia, the United Kingdom and New Zealand are market leaders in this regard. In this way, Asian countries are keeping more of their currency at home while still taking advantage of the latest language training developments available on the market.

Indeed, Hong Kong aims to create 28 500 post-secondary places by 2010 in an effort to keep its students at home. To this end, the government is offering financial incentives to entice non-local providers to create more local programs, either full- or part-time.

Approximately 74 100 local students under the age of 25 study overseas, with Canada receiving the highest percentage. Hong Kong youth studying in Canada add $500 million to the Canadian economy. In the future, however, the government of Hong Kong expects more students seeking a Canadian education to use the services of a local Canadian provider. To keep its market share, Canada faces a significant challenge from Australia, which is already entrenched in the local market. Canadian suppliers must therefore develop strategies for retaining existing market share while exploring other market segments.

To be successful in this market, Canadian suppliers should also understand that Hong Kong is the gateway to mainland China. Hong Kong (June 2003) and Macau (October 2003) have signed Closer Economic Partnership Agreements (CEPA) with the Chinese Mainland³ ; furthermore, China’s Guangdong Province is expanding links with the regions of the Pearl River Delta (PRD).

The upcoming Pan-Pearl River Delta (Pan PRD) Regional Cooperation and Development Forum is a voluntary regional development strategy creating a common market encompassing 460 million people. More than 7500 overseas companies have offices in the Pan PRD, of which 3800 are in Hong Kong. Future free trade agreements could open up southern China to the world, which would require business to be conducted in English. Those considering this market should position themselves now to take advantage of future opportunities.

Macau

With respect to the language training market, Macau is largely untapped territory i.e. language suppliers seldom come to Macau, residents must travel to Hong Kong to obtain support and there is little competition. Canada is among the few countries trying to establish a local presence. At present, the $2.5-million ‚study abroad‛ program represents the largest share of the language market. Because Macau is mostly dependent on Hong Kong for services, it can be considered a secondary market.

Forces driving the English language market in Macau include the recent opening up of the gaming and tourism industries, which has led to a boom in casino construction. The number of expatriate workers in the country is growing and the gaming industry wants its workforce to be English-speaking. English is the third language spoken by the Macanese. There is little government funding for English language training.

Nevertheless, academia is responding to the need for foreign language training, while the local government is planning a review and needs analysis of the education sector which could have a major impact on the local English language market.

With lower business costs, Macau could well evolve into another gateway to China.

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